SECOND
QUARTER
1998
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549
FORM 10-Q
QUARTERLY REPORT UNDER SECTION 13 OR 15(D)
OF THE SECURITIES EXCHANGE ACT OF 1934
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FOR QUARTER ENDED JULY 4, 1998 COMMISSION FILE NUMBER 1-4119
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NUCOR CORPORATION
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(EXACT NAME AS SPECIFIED IN CHARTER)
DELAWARE 13-1860817
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(STATE OR OTHER JURISDICTION OF (I.R.S. EMPLOYER
INCORPORATION OR ORGANIZATION) IDENTIFICATION NO.)
2100 REXFORD ROAD, CHARLOTTE, NORTH CAROLINA 28211
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(ADDRESS OF PRINCIPAL EXECUTIVE OFFICES) (ZIP CODE)
TELEPHONE NUMBER, INCLUDING AREA CODE: (704) 366-7000
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Indication by check mark whether nucor corporation (1) has filed all reports
required to be filed by section 13 or 15(d) of the securities exchange act of
1934 during the preceding twelve months, and (2) has been subject to such filing
requirements for the past 90 days: yes x no
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88,069,675 SHARES OF COMMON STOCK WERE OUTSTANDING AT JULY 4, 1998.
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PART I - FINANCIAL INFORMATION
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NUCOR CORPORATION - CONSOLIDATED CONDENSED STATEMENTS OF EARNINGS
- -----------------------------------------------------------------
SIX MONTHS (26 WEEKS) ENDED THREE MONTHS (13 WEEKS)ENDED
JULY 4, 1998 JULY 5, 1997 JULY 4, 1998 July 5, 1997
(UNAUDITED) (UNAUDITED) (UNAUDITED) (UNAUDITED)
----------- ------------- ------------- -----------
NET SALES .................. $ 2,267,212,238 $ 2,045,580,423 $1,128,350,083 $1,035,090,608
--------------- --------------- -------------- --------------
COSTS AND EXPENSES:
COST OF PRODUCTS SOLD .... 1,975,810,481 1,756,330,304 976,304,508 882,240,633
MARKETING, ADMINISTRATIVE
AND OTHER EXPENSES ..... 78,949,401 72,234,227 40,081,649 38,091,660
INTEREST EXPENSE (INCOME) (2,111,167) 1,409,486 (762,084) 763,423
--------------- -------------- -------------- --------------
2,052,648,715 1,829,974,017 1,015,624,073 921,095,716
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EARNINGS BEFORE
FEDERAL INCOME TAXES ..... 214,563,523 215,606,406 112,726,010 113,994,892
FEDERAL INCOME TAXES ..... 77,200,000 77,600,000 40,500,000 41,000,000
--------------- --------------- --------------- ---------------
NET EARNINGS ........... $ 137,363,523 $ 138,006,406 $ 72,226,010 $ 72,994,892
=============== =============== =============== ===============
NET EARNINGS PER SHARE ..... $ 1.56 $ 1.57 $ .82 $ .83
=============== =============== =============== ===============
DIVIDENDS DECLARED
PER SHARE .............. $ .24 $ .20 $ .12 $ .10
=============== =============== =============== ===============
AVERAGE NUMBER OF
SHARES OUTSTANDING . 88,042,141 87,844,262 88,064,592 87,861,195
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The information furnished reflects all adjustments which are, in the
opinion of management, necessary to a fair statement of the results for the
interim periods.
The information furnished has not been audited and is subject to year-end
adjustments.
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NUCOR CORPORATION - CONSOLIDATED CONDENSED BALANCE SHEETS
JULY 4, DECEMBER 31,
1998 1997
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ASSETS (UNAUDITED) (AUDITED)
CURRENT ASSETS:
CASH AND SHORT-TERM INVESTMENTS................. $ 291,295,000 $283,381,137
ACCOUNTS RECEIVABLE............................. 390,396,184 386,352,612
INVENTORIES..................................... 406,150,619 397,048,379
OTHER CURRENT ASSETS............................ 60,875,034 58,726,336
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TOTAL CURRENT ASSETS.......................... 1,148,716,837 1,125,508,464
-------------- --------------
PROPERTY, PLANT AND EQUIPMENT..................... 1,963,997,110 1,858,874,894
-------------- --------------
TOTAL ASSETS.................................. $3,112,713,947 $2,984,383,358
============== ==============
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES:
LONG-TERM DEBT DUE WITHIN ONE YEAR.............. $ -- $250,000
ACCOUNTS PAYABLE................................ 233,113,480 260,268,115
SALARIES, WAGES AND RELATED ACCRUALS............ 108,803,422 110,730,654
FEDERAL INCOME TAXES............................ 19,684,504 9,988,843
ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES.. 149,272,022 143,215,998
-------------- --------------
TOTAL CURRENT LIABILITIES..................... 510,873,428 524,453,610
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LONG-TERM DEBT DUE AFTER ONE YEAR................. 215,450,000 167,950,000
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DEFERRED CREDITS AND OTHER LIABILITIES............ 141,361,449 139,361,449
-------------- --------------
MINORITY INTERESTS................................ 249,050,938 276,192,433
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STOCKHOLDERS' EQUITY:
COMMON STOCK.................................... 36,020,714 35,994,843
ADDITIONAL PAID-IN CAPITAL...................... 65,267,667 62,041,288
RETAINED EARNINGS............................... 1,911,505,110 1,795,276,453
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2,012,793,491 1,893,312,584
TREASURY STOCK.................................. (16,815,359) (16,886,718)
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1,995,978,132 1,876,425,866
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TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY.... $3,112,713,947 $2,984,383,358
============== ==============
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Inventories consisted of approximately 60% raw materials and supplies, and 40%
finished and semi-finished products, at July 4, 1998 (60% and 40% at Dec-
ember 31, 1997).
The information furnished has not been audited and is subject to year-end
adjustments.
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NUCOR CORPORATION - CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS
SIX MONTHS (26 WEEKS) ENDED
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JULY 4, 1998 JULY 5, 1997
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(UNAUDITED) (UNAUDITED)
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OPERATING ACTIVITIES:
NET EARNINGS............................................ $137,363,523 $138,006,406
ADJUSTMENTS:
DEPRECIATION OF PLANT AND EQUIPMENT................... 118,748,941 105,273,959
MINORITY INTERESTS.................................... 48,188,268 41,406,373
CHANGES IN:
CURRENT ASSETS...................................... (15,294,510) (80,510,987)
CURRENT LIABILITIES................................. (13,330,182) 51,521,973
OTHER............................................... (8,918,147) 3,013,727
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CASH PROVIDED BY OPERATING ACTIVITIES................. 266,757,893 258,711,451
------------ ------------
INVESTING ACTIVITIES:
CAPITAL EXPENDITURES (NET).............................. (212,953,010) (151,958,579)
------------ ------------
CASH USED IN INVESTING ACTIVITIES..................... (212,953,010) (151,958,579)
------------ ------------
FINANCING ACTIVITIES:
INCREASE IN LONG-TERM DEBT.............................. 47,250,000 14,850,000
DISTRIBUTIONS TO MINORITY INTERESTS..................... (75,329,763) (65,474,465)
ISSUANCE OF COMMON STOCK................................ 3,323,609 2,298,685
CASH DIVIDENDS.......................................... (21,134,866) (17,572,684)
------------ ------------
CASH USED IN FINANCING ACTIVITIES..................... (45,891,020) (65,898,464)
------------ ------------
INCREASE IN CASH AND SHORT-TERM INVESTMENTS............... $ 7,913,863 $ 40,854,408
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The information furnished has not been audited and is subject to year-end
adjustments.
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NUCOR CORPORATION - ANALYSIS OF OPERATIONS AND FINANCES
OPERATIONS
Net sales increased by about 9% from the second quarter of 1997 to the
second quarter of 1998, with substantially all of the net sales increase
resulting from an increase in sales volume. Net sales increased close to 11%
from the first half of 1997 to the first half of 1998, primarily as a result of
an increase in sales volume. Average sales prices increased about 1% from the
second quarter of 1997 to the second quarter of 1998, and were unchanged from
the first half of 1997 to the first half of 1998.
The major component of cost of products sold is raw material costs. The
average price of raw materials increased less than 5% in both the second quarter
of 1998 compared with the second quarter of 1997, and the first half of 1998
compared with the first half of 1997.
Major components of marketing, administrative and other expenses are freight
and profit sharing costs. Unit freight costs decreased about 1% from both the
second quarter of 1997 to the second quarter of 1998, and from the first half of
1997 to the first half of 1998. Profit sharing costs decreased about 8% from the
second quarter of 1997 to the second quarter of 1998, and decreased about 3%
from the first half of 1997 to the first half of 1998. Profit sharing costs are
based upon and generally fluctuate with pre-tax earnings.
Interest income, net of interest expense, increased for the second quarter
and first half of 1998 from the second quarter and first half of 1997, due
primarily to increased earnings from short-term investments.
Federal income taxes were at a rate of about 36% for the second quarter and
first half of 1998, and the second quarter and first half of 1997.
Net earnings were substantially the same from the second quarter of 1998 to
the second quarter of 1997, and from the first half of 1998 to the first half of
1997.
Margins were about 13% for the second quarter and first half of 1998,
compared with about 15% for the second quarter of 1997 and about 14% for the
first half of 1997.
LIQUIDITY AND CAPITAL RESOURCES
The current ratio was about 2.2 at the end of the first half of 1998, and
about 2.1 at year-end 1997. The percentage of long-term debt to total capital
was about 9% at the end of the first half of 1998, and about 7% at year-end
1997.
Capital expenditures increased close to 40% during the first half of 1998,
compared with the first half of 1997. Capital expenditures are projected to be
more than $400 million for all of 1998. Funds provided from operations, existing
credit facilities, and new long-term debt are expected to be more than adequate
to meet future capital expenditure and working capital requirements.
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PART II - OTHER INFORMATION
ITEM 4 - SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS
At the annual meeting of stockholders held on May 14, 1998, two directors
were elected for terms of three years expiring in 2001; 75,708,546 shares were
voted for John D. Correnti (1,531,085 abstained), and 75,718,543 shares were
voted for James D. Hlavacek (1,521,088 abstained). An amendment to Nucor's
Certificate of Incorporation, increasing the number of authorized shares of
common stock to 200,000,000, was approved; 74,008,996 shares were voted for the
amendment (3,015,202 shares against and 215,433 abstained).
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ITEM6 - EXHIBITS AND REPORTS ON FORM 8-K EXHIBIT 11 - COMPUTATION OF NET
EARNINGS PER SHARE. REPORTS ON FORM 8-K - NONE FILED FOR THE QUARTER.
EXHIBIT 11 - COMPUTATION OF NET EARNINGS PER SHARE
SIX MONTHS (26 WEEKS) ENDED THREE MONTHS (13 WEEKS) ENDED
---------- --------------- ------------ ---------------
JULY 4, 1998 JULY 5, 1997 JULY 4, 1998 JULY 5, 1997
------------ ------------ ------------ --------------
(UNAUDITED) (UNAUDITED) (UNAUDITED) (UNAUDITED)
---------- ---------- ----------- ---------
BASIC:
BASIC NET EARNINGS............. $137,363,523 $138,006,406 $72,226,010 $72,994,892
============ ============ =========== ===========
AVERAGE SHARES OUTSTANDING..... 88,042,141 87,844,262 88,064,592 87,861,195
============ ============ =========== ===========
BASIC NET EARNINGS PER SHARE... $1.5602 $1.5710 $.8201 $.8308
============ ============ =========== ===========
DILUTED:
DILUTED NET EARNINGS........... $137,363,523 $138,006,406 $72,226,010 $72,994,892
============ ============ =========== ===========
DILUTED
AVERAGE SHARES OUTSTANDING:
BASIC SHARES OUTSTANDING..... 88,042,141 87,844,262 88,064,592 87,861,195
DILUTIVE EFFECT OF
EMPLOYEE STOCK OPTIONS..... 21,564 53,382 27,160 56,067
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88,063,705 87,897,644 88,091,752 87,917,262
========== ========== ========== ===========
DILUTED NET EARNINGS PER SHARE. $1.5598 $1.5701 $.8199 $.8303
========== ========== ========== ===========
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The information furnished has not been audited and is subject to year-end
adjustments.
SIGNATURES
Pursuant to the requirements of the securities exchange act of 1934, Nucor
Corporation has duly caused this report to be signed on its behalf by the
undersigned, who is (1) a duly authorized officer, and (2) the principal
financial officer.
NUCOR CORPORATION
By:________________________________
Samuel Siegel
Vice Chairman,
DATED: AUGUST 11, 1998 Chief Financial Officer
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<ARTICLE> 5
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<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> DEC-31-1998
<PERIOD-END> JUL-04-1998
<CASH> 291,295,000
<SECURITIES> 0
<RECEIVABLES> 390,396,184
<ALLOWANCES> 20,792,135
<INVENTORY> 406,150,619
<CURRENT-ASSETS> 1,148,716,837
<PP&E> 3,180,449,365
<DEPRECIATION> 1,216,452,255
<TOTAL-ASSETS> 3,112,713,947
<CURRENT-LIABILITIES> 510,873,428
<BONDS> 215,450,000
<COMMON> 36,020,714
0
0
<OTHER-SE> 1,959,957,418
<TOTAL-LIABILITY-AND-EQUITY> 3,112,713,947
<SALES> 2,267,212,238
<TOTAL-REVENUES> 2,267,212,238
<CGS> 1,975,810,481
<TOTAL-COSTS> 1,975,810,481
<OTHER-EXPENSES> 78,949,401
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> (2,111,167)
<INCOME-PRETAX> 214,563,523
<INCOME-TAX> 77,200,000
<INCOME-CONTINUING> 137,363,523
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 137,363,523
<EPS-PRIMARY> 1.56
<EPS-DILUTED> 1.56
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